Irish investment group Tetrarch Capital has completed the acquisition of joint venture partner, California-based Pimco's stake in Citywest Hotel, a 764-room hotel with golf course and a large landholdings in Dublin.
The transaction, whose financial details were not disclosed, was supported by a €60 mln loan from Starwood European Real Estate Finance, which will also be used to refurbish and reposition the hotel.
Citywest was acquired out of receivership by Tetrarch and Pimco in September 2014 for about €30 mln and has since received €11 mln in capital expenditure.
Currently the largest hotel in Ireland, Citywest features 30 different meeting and/or event venues, a Convention Centre with physical capacity for up to 8,000 people and an 18-hole, par-70 championship golf course. The Hotel and Convention Centre were developed between 1990 and 2009.
Starwood Capital have also provided an additional €9 mln loan to finance the conversion of 80 aparthotel units into 84 residential apartments at Westpark Apartments. The six apartment blocks are adjacent to the golf course at Citywest Hotel, and the redevelopment is due for completion by October 2019.
Michael McElligott, CEO of Tetrarch Capital commented: 'The deal makes us the long-term owners of Citywest, which has always been our ambition. We remain very optimistic for the future of the Hotel, Convention Centre and our wider holdings in the area, and will continue to invest in plans we have for the further enhancement of Citywest as Ireland’s preeminent conference destination.'
Lorcain Egan, vice president at Starwood Capital added: 'Ireland remains one of the primary target markets for Starwood European Real Estate Finance as part of its broader European investment strategy.'
